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March 12, 2007

Local News

Wallstreet to Michigan: Straighten Out!

With the threat of a credit downgrade looming, Michigan could be facing higher borrowing interests rates.

Michigan's current year budget deficit is greater than $800 million and is the only state with a negative credit outlook according to credit rateing services.

Debate is stirring within the state on the most appropriate form of action for Michigan's climb out of deficits. Governor Granholm's solution includes a 2% tas on services which would generate an expected $1.5 billion in revenues annually. State republicans, however, feel budget cut backs would be a better solution. Heated negotiations are presumed to arise in the following weeks.

More on this story.

Posted by caldamyk at March 12, 2007 11:28 PM